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Australia shares trim gains after weak China data, resources firms shine

Published 28/08/2015, 01:00 pm
© Reuters.  Australia shares trim gains after weak China data, resources firms shine
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* Pares gains after poor Chinese data

* Metals and energy shares top performers

* Index on track to end week in black

* 103 shares up, 86 down and 11 unchanged (Adds analysis, quotes, stocks on the move)

By Pauline Askin and Naomi Tajitsu

SYDNEY/WELLINGTON, Aug 28 (Reuters) - Australian shares trimmed early gains on Friday after weak data from China kept alive worries about slowing momentum in its economy, though a rally on Wall Street and a rebound in commodities helped drive energy and materials sectors higher.

The S&P/ASX 200 index .AXJO rose 0.7 percent, or 33.77 points, to 5,266.5 by 0233 GMT, but pulled back from a 1.4 percent jump in morning trade.

It marked the fourth straight day of rises for the index, which gained 1.2 percent on Thursday. After a tumultuous start to the week when global markets were rocked by turmoil in Chinese equities, the index is on track for its first percentage gain in three weeks.

"We are going to get much more volatility, certainly in the short term," said Ben Le Brun, market analyst at OptionsXpress.

In Asia, stocks extended a rally on Wall Street after upbeat U.S. economic data helped calmed nerves rattled by fears of a hard landing for China's economy. ID:nL4N113031

China, a major market for Australian exports, remained a major focus for investors after policy makers launched a barrage of stimulus measures this week.

Data earlier on Friday showed profits earned by Chinese industrial companies declined 2.9 percent in July from a year ago, highlighting weakening momentum in the world's second-biggest economy. ID:nENNF8Q0SB

Mining companies were among the top performers with Fortescue Metals FMG.AX jumping 7.8 percent while major miners BHP Billiton (LONDON:BLT) BHP.AX and Rio Tinto (LONDON:RIO) RIO.AX rose 5.7 percent and 3.8 percent respectively.

Energy stocks such as Beach Energy BPT.AX and Drillsearch DLX.AX were boosted after oil prices rose by over 10 percent. ID:nL4N1121CE

Major banks Westpac WBC.AX , NAB NAB.AX and Commonwealth Bank CBA.AX reversed their gains to fall 0.2-0.5 percent.

For more individual stocks activity click on STXBZ

New Zealand's benchmark NZX50 share index .NZ50 rose 36.54 points or 0.65 percent to 5,671.44, pushing further away from a near eight-month closing low plumbed earlier this week, as investors picked up healthcare and industrial firms, some of which had sold off sharply in past days.

Ebos EBO.NZ rose 0.8 percent, bolstered after the pharmaceuticals and pet care supplier reported a record annual profit earlier in the week.

Auckland Airport AIA.NZ rose 0.4 percent as investors bought the operator of the country's largest airport on dips after it slumped to a three-month low of NZ$4.75 earlier in the week.

Mighty River Power MRP.NZ rose 1.7 percent, boosted after the power retailer announced a special dividend for the year just ended even as net profit fell. ID:nnWNBS01AB3

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